Find solutions to your questions with the help of IDNLearn.com's expert community. Our platform is designed to provide trustworthy and thorough answers to any questions you may have.
On February 1, 2018, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,360,000. During 2018, costs of $2,120,000 were incurred with estimated costs of $4,120,000 yet to be incurred. Billings of $2,620,000 were sent, and cash collected was $2,370,000.
In 2019, costs incurred were $2,620,000 with remaining costs estimated to be $3,780,000. 2019 billings were $2,870,000 and $2,595,000 cash was collected. The project was completed in 2020 after additional costs of $3,920,000 were incurred. The company’s fiscal year-end is December 31. Arrow recognizes revenue over time according to percentage of completion.
Required:
1. Prepare journal entries to recognize revenue for 2018, 2019 and 2020.
Sagot :
We value your presence here. Keep sharing knowledge and helping others find the answers they need. This community is the perfect place to learn together. Thank you for visiting IDNLearn.com. We’re here to provide accurate and reliable answers, so visit us again soon.
